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What do with an old 401(k) if you find it

There are thousands of unclaimed billions of dollars in ghosted workplace retirement plans. In most states, unclaimed property money goes back to the state which you left. Your retirement savings may be part of that if you acted carelessly when leaving a job and forgot to take them with you. A stylus pen is always handy when you use your mobile or tablet to do everyday work. Now, find and research your 401(k) plan more efficiently by using an Evach active stylus pen. 

Even if you haven’t touched your old 401(k) for quite some time, the money is yours. Finding it is all that’s required.

Are you having trouble finding your old 401(k)?

There are three possible places that your old 401(k) can be if you have no idea where it is. You can find your 401(k)s here:

  1. The old account that your employer gave you is right where you left it.
  2. 401(k) plan administrators will open a new account for you.
  3. The unclaimed property belongs to your state’s department of unclaimed property.

You can begin your search by doing the following:

Check your old 401(k) with your old employer.

When an employer tries to find a departed employee with money in a 401(k), the data on hand makes a more significant difference than the information it receives. The law does not require them to look hard or for how long they must look, except giving 30 to 60 days’ notice.

Your former company may have lost your notices or moved since the last time you heard from them. You should contact and ask them to Find my 401k account statement and contact the plan administrator, the financial firm for which you received updates.

The money in your old plan may still be there, but you might not want to leave it there.”

You may still have your money in your workplace account if you had more than $5,000 in your retirement account when you left.

Depending on your age and the law, you may be allowed to hold onto your retirement funds until age 72, when the IRS requires withdrawals, but you might not want to. If you’re thinking about leaving your existing 401(k) account, here’s how to decide.

Amounts under $5,000 are more flexible for plan administrators. 

You may receive a check for $1,000 or less, sent to your last known address, and deal with the tax consequences afterward. You don’t need to consent to their funds’ transfer of up to $5,000 in amounts exceeding $1,000. Financial institutions that are Federally authorized to manage these accounts set up special IRA accounts.

For rollovers into new IRAs, your money is still protected from taxes. Having to find a new trustee is the bad news.

Check the new address of your money.

Several databases will help you locate your 401(k) funds if your old administrator cannot.

  • The Department of Labor’s database of abandoned plans is a good starting point.
  • Additionally, FreeErisa provides information on employee benefit plans.
  • You can search the U.S. government website for pension plans. A database of pensions unclaimed by the Pension Guaranty Corporation.
  • A service called the National Registry of Unclaimed Retirement Benefits also works like a “missed connection,” in that companies register with the site to learn about the unclaimed retirement funds of ex-employees. The site does not list every company, so move on if you do not see any results.

Look up unclaimed property databases.

Regardless of how much money is left in an account, a company can do more with unclaimed money if it terminates its retirement plan.

If you lose your money, you can get it back. You might be able to reclaim it by investing it into your IRA, depositing it in a bank, or leaving it with the state’s unclaimed property fund. Using, which is run by the National Association of Unclaimed Property Administrators, you can conduct a multistate search of state unclaimed property divisions.

A portion of your savings is withheld for payment to the IRS. Suppose the plan administrator withdraws your money and transfers it to a bank account or the state. These transfers are considered distributions (aka cashing out) and are subject to income tax and penalties. Many 401(k) plans to withhold part of the balance to cover potential taxes. The 1099-R IRS form is used to report the income to the IRS. Some don’t, which may leave you with an IOU from the IRS.

How to deal with an old 401(k)

It is possible that your old 401(k) money can stay where it is now if it was with your former employer. It’s not uncommon to invest in mutual funds if you have access to institutional-only funds – like 401(k) plans – that charge lower management fees. Due to your departure from the company, you are no longer permitted to contribute to this plan.

In addition to the broader range of investments you can access with an IRA or through your employer plan, you also have more control over the account fees.

You don’t have to – or probably shouldn’t – leave your money in an IRA. Study findings of forced-transfer IRAs show high annual fees (up to $115) and low investment returns (0.01% to 2.05% in conservative investments stipulated by Labor Department regulations) “can steadily reduce a relatively small stagnant balance.”


How To Avoid Losing Your 401(K) Plan

If you held a job decades ago, it could be time-consuming to track down the 401(k) associated with it. 

If you roll over your 401(k) to an IRA or into your new employer’s 401(k) plan each time you change jobs, you will be able to control your investment options and fees better. You can avoid tax withholding and additional taxes and penalties by moving your money directly to a new account using trustee-to-trustee transfers. Whether you are switching jobs or funding your own IRA, Pitman says to roll over your plan to your new employer. No penalties are typically incurred by rollovers that do not involve cash-outs.